If you are considering marriage or planning a wedding you may have considered a prenuptial agreement. Some people believe that a prenuptial agreement is only beneficial if one or both parties are extremely wealthy or have a substantial amount of assets. Although a prenuptial agreement would be helpful (if not necessary) in such a situation, prenuptial agreements can be beneficial for people of all income levels.
There are many reasons a prenuptial agreement might be the right choice for you. Keep reading to learn more about common situations and reasons for getting a prenuptial agreement:
- One or both people own their own business. In Illinois, if a business is started during the course of a marriage, the business itself can be considered a marital asset. A prenuptial agreement allows you to classify your business as non-marital whether it was started prior to or during the marriage. Oftentimes, people are worried about their spouse becoming an unintended business partner. A prenuptial agreement can prevent this from occurring.
- You want to protect your retirement. Like a business interest, any retirement accumulated during the course of the marriage will likely be classified as marital. For people who would like to keep their retirement assets separate, a prenuptial agreement can accomplish this and ensure your retirement is planned for and protected.
- You want to minimize litigation. Without a prenuptial agreement, a divorce can be a lengthy and costly process. While most couples getting married are likely not thinking about a possible divorce, by planning for your future with a prenuptial agreement, you can minimize or even eliminate the need for litigation should you get divorced.
- You will benefit from discussing finances. There are a surprising number of people who go into marriage having never discussed their financial situation or how finances will be handled during the marriage. This is one of the leading reasons for divorce. During the process of drafting the prenuptial agreement, you and your soon-to-be spouse will need to have crucial conversations centered around finances. This can help prevent disagreements down the road as both of you will be aware of exactly what the other has and what the plan is for handling finances during the marriage.
- This is not your first marriage. For a couple where one or both partners were previously married or have children from a prior relationship, a prenuptial agreement can provide security for all family members. A prenuptial agreement can ensure that your assets are distributed according to your wishes by necessitating the creation of an estate plan. This can specify how your estate plan will work and ensure that certain members of your family receive the assets you choose to leave to them.
After learning more about prenuptial agreements, you may have questions about your own situation or think a prenuptial agreement is the right choice for you. Our attorneys are here to help answer your questions and walk you through the process of preparing a prenuptial agreement. Contact our office to set up an appointment today. You can also check out this blog on questions to ask when meeting with an attorney for a prenuptial agreement.